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THAI MARKET FOR ICT PRODUCTS P a g e | 1
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PRODUCT MARKET STUDY
THAILAND’S MARKET FOR
ICT
MATRADE BANGKOK
Dec 2009
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TABLE OF CONTENTS
1. Industry Overview Page 3
2. Industry Classification Page 22
3. ICT imports in Thailand Page 22
4. Distribution Channels Page 27
5. Standards and Regulations Page 33
6. Tariffs Page 37
7. Market Trends Page 38
8. Challenges Faced Page 43
9. Relevant Trade Fairs Page 44
10. Relevant Trade Associations/Agencies Page 49
Sources of Information:
 www.customs.go.th
 www.boi.go.th
 www.moc.go.th
 www.bangkokpost.com
 www.nationmultimedia.com
 www.eiu.com
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1. Industry Overview
The Thai ICT market is growing at one of the highest rates in the region.
With a population of over 60 million and the penetration rate of mobile and
Internet continuing to grow, Thailand has become a very attractive market.
Thailand is also becoming increasingly affluent and disposable incomes are
growing. This has resulted in increased expenditure on IT products.
In regards to IT infrastructure, the low fixed line broadband penetration (11
per cent in 2009) is compensated by the Kingdom’s high mobile telephone
penetration, estimated at 97 per cent in 2009. In the capital, Bangkok,
mobile telephone penetration is above 120 per cent. The Thai Government
has set plans for implementing mobile broadband to compensate for the
low fixed-line broadband penetration, estimated to two per cent in 2009, in
order to catch up on neighboring countries and this gives opportunity to
introduce solutions that have already been tested in other markets.
However, Thailand’s ICT market faces challenges as it enters a period of
liberalization. The government has set up an independent regulatory body,
the National Telecommunications Commission (NTC) to remove regulatory
matters from the former government state owned enterprise, TOT Public
Company Limited (TOT) and Communication Authority of Thailand (CAT)
area of responsibility. NTC is attempting to provide a framework for free
and fair competition and has transformed some areas. This process has
even resulted in the delay of 3G rollout in the country.
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Thailand’s Board of Investment (BOI) is focusing on ICT and software
design by offering special tax incentives towards this sector. BOI’s special
incentives to investors in the ICT sector, include maximum tax incentives
for high-technology investment projects totaling more than US$0.9
Million(Baht30 million) and producing products not yet made in Thailand,
and exemption from import duties on raw materials and components used
for producing electronic goods, just to name a few.
This combined with BOI’s Regional Operating Headquarters incentives has
resulted in excellent opportunities for setting up ICT services and software
headquarter/competency centers and shared services.
Thailand ICT Market 2007 – 2008 and Outlook 2009
ICT Market
Value (US million) YTY Growth (%) Value in %
2007 2008 2009f 07/08 08/09 2007 2008 2009f
1.Computer
Hardware
2,036 2,262 2,253 11.1 -0.4 13.6 13.9 13.3
2.Computer
Software
1,691 1,880 1,975 11.2 5.1 11.3 11.6 11.6
3.Computer
Services
640 746 852 16.6 14.2 4.3 4.6 5.0
4.Communications 10,607 11,327 11,963 6.8 5.6 70.8 69.9 70.2
Total 14,974 16,214 17,043 8.3 5.1 100 100 100
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IT Market Comparison 2007 – 2009
IT Market 2008 = US$ 6,676 Million
Increased From 2007 = 11.9%
IT Market 2008 = US$ 6,676 Million
Increased From 2007 = 11.9%
IT Market 2009f = US$ 7,067 Million
Increased From 2008 = 5.9%
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ICT Spending by Economic Sector in 2008
( 1 USD : Baht 33.48)
IT Spending by Economic Sector in 2008
( 1 USD : Baht 33.48 )
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Computer Hardware
HW Market Growth 2007 – 2009
HW Market Value in MB 2007 – 2009f
1,738
1,859
600
1,200
1,8001,800
2,400
US Million
2,036
2,262 2,253
1,738
1,859
600
1,200
1,800
2,400
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Desktop PC Sales in 2005 – 2009f
Inter Brand vs. Local Brand+DIY
Sales Comparison
Desktop PC V.S. Notebook in 2005 – 2009f
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Mini Notebook Sales in 2007 – 2009f
Sales of CRT vs. LCD
in 2005 -2009f
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Sunrise vs. Sunset
HW Market (in MB) in 2008 by Economic Sect
Million USD
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HW Market 2007- 2009 by Economic Sector
Computer Software
Software Market 2007 – 2009
2009
1,495
1,691
1,880
1,975
2,400
2,100
1,800
1,500
1,200
900
2006 2007 2008
Million USD
2009f
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Software Market by Category 2007 – 2009f
( 1 USD : Baht 33.48 )
1. Include Package Software and Software Development
2. Business Application and Entertain Application
3. e-Learning, CAD/CAM, Games (exclude On-Line Games) , etc
Enterprise Software
Packaged Software VS Developed Software
1,659
(M USD)
1,719
(M USD)
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Mobile Application Software
Business App. vs. Entertainment App.
Software Spending by Economic Sector 2007 – 2009f
79
(Mil USD)
95
(Mil USD)
2007
2008
2008f
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Technology Trend: Software
Enterprise Software
- Service Oriented Architecture (SOA)
- Software as a Service
- Web 2.0
- Cloud Computing
- Open Sources Software
- Storage Management
Mobile Applications
- 3G (New Application on Mobile)
- GPS on Mobile
- Services Application on Mobile (Mobile Banking/ Mobile Payment)
- Mobile Internet
- Mobile App. for Business Process Management (CRM App.)
- I-Phone related applications
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Computer Software Market 2007 - 2008
and Outlook 2009f
1. Data Center and Disaster Recovery Center include Web Hosting/Mail Hosting, Co-
Location Service/Dedicated Server Services, and Disaster Recovery Services and
Others (those located in the Data Center and outside the Data Center)
2. IT Outsourcing includes Enterprise-Wide, Network and Desktop Management, and
Application Management and Others.
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Computer Services
Computer Services Market 2006 – 2008
and Outlook 2009f
Million USD
900
750
600
450
300
150
2006 2007 2008 2009f
Million USD
900
750
600
450
300
150
0
528
640
746
852
2006 2007 2008 2009f
Million USD
900
750
600
450
300
150
0
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Computer Services Market in 2008
1. Data Center and Disaster Recovery Center include Web Hosting/Mail Hosting, Co-
Location Service/Dedicated Server Services, and Disaster. Recovery Services and
Others (those located in the Data Center and outside the Data Center
2. IT Outsourcing includes Enterprise-Wide, Network and Desktop Management, and
Application Management and Others.
Computer Services Market in 2008 By Economic Sector
Sectors Value (Mil. USD) Ratio (%)
Government 187 25
Corporate/Enterprise 553 74
Household/SOHO* 6 1
Total 746 100
Remark : Small Office and Home Office
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Computer Services Market 2007 – 2008
by Economic Sector
Communications
Scope /Definition of Communications Market
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Communications Market 2008 – 2009f
Communications Equipment Market 2007 – 2009f
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Communication Services Market 2007 – 2009f
Communications Equipment Market 2008
By Type of Users
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Communications Services Market 2008
By Type of Users
Communications Equipment
- Wi-fi Mesh (roaming network equipment)
- Security Equipment
- Wireless N (Multiple SSID)
- Mobile Internet Device for 3G & Wimax
- iPhone
Communications Services
- Multimedia, Digital Content Mobile Interne
- 3G, Wimax
- Unified Communications/Unified Messaging
- Video Conference
Source: www.nectec.or.th/srii/
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2. Industry Classification
Most of the products/components covered in this report fall under
Harmonized System Code
8471 – Automatic data processing machines and units thereof; magnetic
or optical readers, machines for transcribing data onto data media in
coded form and machines for processing such data, not elsewhere
specified or included.
3. ICT import in Thailand
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4. Distribution channels
The basic distribution channel is through computer wholesalers and
distributors. Some of the established distributors are as below:
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There are also key distribution areas where many small retailers are
centered around, similar to Malaysia’s Low Yat Plaza.
4.1 Pantip Plaza. (4 Branches)
The flagship store is located at:
604/3 Petchburi Rd, Rachatevi Bangkok 10400
Tel: (662)256-0355
Fax: (662) 256-0449
E-mail: info@pantipplaza.com
www.pantipplaza.com
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4.2 IT CITY
IT CITY Public Company Limited is a superstore, selling computers,
peripherals and other related IT products (One Stop Shopping IT Products)
under the trade name "IT CITY" which is a retail superstore chain,
specializing in IT products. Its slogan is "The IT Superstore".
Contact address: Headquarters is located at 604/3 Pantip Plaza Bldg., 5th-
6th Fl., Petchburi Road, Tanon Petchburi, Rajthevee, Bangkok 10400,
Thailand.
Tel: 0-2656-5030-45
Fax: 0-2656-5049
Website: www.itcity.co.th
4.3 Hardware House
Hardware House International is retail outlet specializing in consumer
Audio/Visual/Consumer Electronics, computer equipment, IT and digital
lifestyle products.
It has 90 branches covering the Bangkok metropolitan area and distributed
to IT centers in the provinces.
Address: 33 / 4, 2nd Floor, Rama 9 Road.
Huay Kwang, Bangkok 10310.
Tel: (662) 685-8900
Fax: (662) 685 8826
Website: http://www.hwhinter.com/index.php
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4.4 IT Square
IT square supports 300 retailers specializing in IT products and services.
Space overall than 120,000 square meters with convenient parking to
2,500 vehicles with the idea that. "Digital life at IT Square" is also a nine
storey office building and approximately 15,000 square meters of space
available with.
Address: 333/100, Moo 4 Chaengwattana Road, Laksi, BangKhen,
Bangkok, 10210, Thailand
Tel: 025760333
Fax: 0-2576-0789.
Website: http://www.itsquareonline.com/
Email: info@itsquareonline.com.
Webmaster: webmaster@itsquareonline.com.
4.5 Data IT Super Stores Company Limited.
Address: 99 Room FC109, 4th
Floor Zeer Rangsit Shopping Complex,
Phaholyothin Road, Kukot, Lumlukka, Pathumthani, 12130, Thailand.
Tel: (662)531-3333
Fax: (662)523-8899.
Website: http://www.data-it.co.th/index.html
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4.6 Power Buy Co., Ltd. (64 Branches)
There are also key distribution areas where every The Mall and Central
Department store.
Address: 919/555 South Tower 11 Floor, Silom Rd, Bangrak, Bangkok
10500 Thailand
Tel. (662) 2069300
http://www.powerbuy.co.th/
4.7 Tesco Lotus (439)
There are also key distribution areas.
Address: 629/1 Moo 10 Navamin Rd, Klongkum Bungkum Bangkok 10230
Thailand.
Tel. (662) 797-9000
http://www.tescolotus.net
4.8 Siam Makro (29 Branches)
There are also key distribution areas. Contract address 3498 Floor 2 rd.
Ladproa Rd. Klongjan, Bangkapi, Bangkok 10240
Tel.(662) 723 1000,723 1000
Fax.(622)375-2789
E-mail: makrocrm@siammakro.co.th
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http://www.siammakro.co.th/contact.php
4.8 Home Pro (35 Branches)
There are also key distribution areas. Contract address 96/27 Moo 9
Bangkhen Aumphur Muang, Nonthaburi 11000
Tel. (622) 832-1000
http://www.homepro.co.th
5. Standards and regulations
Standards
In the case of standards, it varies according to the products. Information
related to specific IT products and services can be obtained from:
Thai Industrial Standards Institute
Rama 6 Street, Ratchathewi, Bangkok 10400, THAILAND
Telephone: (662) 202 3301-4 Fax: (662) 202 3415
E-mail: thaistan@tisi.go.th
Contact person: Khun Tinakon Pongluxna
Tel: (622)202 3467, 202 3474
Email: tinakon@tisi.go.th
Some of the standards related to the ICT sector in Thailand can be
obtained from http://www.nectec.or.th/it-standards.Many of these
documents are in Thai.
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A) Register with Thai Customs Department
Importer/Agent in Thailand must complete registration with the Thai
Customs Department (E –Import),
Documents required before going through the E-Import process:
- Submit company registration to the Customs. Foreign Direct
Investors, who did not register their companies in the Kingdom,
can still apply to the Customs provided they have done the
Company Registration** abroad. The registrations, however, must
be attested by a recognized Notary Public and the attestation must
not over than six months.
**http://www.customsclinic.org/index.php?option=com_phocadown
load&view=sections&Itemid=0&lang=en (E-Service)
- Original and a copy of Company’s Bank Statement or Saving
Account Book.
Other related documents;
- ID card or passport of company’s authorities.
- Registration for Foreign Trader issued by Ministry of
Commerce, etc
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B) Importation
When a shipment arrives in Thailand, importers are required to file a Goods
Declaration and supporting documents for the imports with a Customs
officer at the port of entry.
Document:
The minimum documents required for the clearance of imports consists of:
(1) Import Declaration (Electronic Document 91/1)
(2) Bill of Lading (B/L) or Air Waybill
(3) Invoice (Electronic Document)
(4) Packing List
(5) Import License (if applicable)
(6) Certificates of Origin (if applicable)
(7) other relevant documents such as catalogue, product
Specification, etc.
C) E-Import procedure to be done online using the Royal Thai
Customs e-System
Objective: For customs clearance
1. Importer/Agent who are registered with the Thai Customs (and hence
has registered with the e-service system) inputs invoice and
Shipping/Cargo data into computer system at his/her office or through
counter service. After that, data will be electronically transmitted to
Customs.
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2. Custom officer manifest data e.g. Ship bill no., master Ship bill no.,
etc.
3. Data is processed and examined by Customs system. In case the
data is found “not match”, the system will inform importer/agent for
making correction.
4. If the data “matches”, the system will issue a Shipping/Cargo permit
no. along with a Shipping/Cargo status (Green Line or Red Line) to
be used for Shipping/Cargo inspection at Checking Post.
5. When Ship/Airline arrives at the mentioned Port, the Importer officer
will break down and keep in location, preparing for delivery.
6. Importer/Agent contacts Shipping/Airline office for D/O documents
(Delivery Order) to be used for D/O payment fee.
7. Importer/Agent obtains Shipping/Cargo shipment at Port Authority of
Thailand, along with a Shipping/Cargo permit document.
8. At Customs Checking Post exit, importer/agent submits a
shipping/cargo permit document and has a shipping/cargo shipment
checked according to its status, green line or a red line
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For further inquiry and information,
E-mail : customs_clinic@customs.go.th
Website: http://www.customsclinic.org/
6. Tariffs
Exports of ICT products and services are exempted from import tariff under
the Common Effective Preferential Tariff arrangement under ASEAN Free
Trade Agreement effective 1st
January 2010.
Other Taxes
Thailand imposes VAT (Value Added Tax) of seven per cent for all
products sold domestically.
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7. Market trends
Trends and Competitive Environment
Thailand's information technology market is expected to return to normal
growth in 2010, with the hardware market forecast to grow by 20 per cent
and the software market by 17 to 20 per cent. There will be two major
factors driving IT-market growth next year: the Intel Core i series central
processing units (CPUs) - the Core i3, Core i5 and Core i7 - and Microsoft's
Windows 7, the latest version of the ubiquitous operating system. Both of
them will create a big impact on the corporate and consumer IT markets.
IT purchases are expected to grow next year in the corporate segment due
to the change of core technologies - both operating systems and CPUs -
and a rise in the "refreshment cycle", after companies had slowed their IT-
replacement programmes for two years because of the economic crisis.
The coming of Windows 7 and the Intel Core i family will help to raise the
total IT market next year beyond this year's level (when it grew by only 10
to 15 per cent).
Intel Thailand is planning to spend "a significant marketing budget" next
year to promote its new Core i family of CPUs. The Core i3, Core i5, and
Core i7 will supersede Intel's current Celeron, Pentium, Core2 Duo and
Core 2 Quad CPUs. Any Malaysian IT product that supports these
specifications will have opportunity to further grow market presence in
Thailand.
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The rapid increase in Internet usage, a widespread expansion of social
networking and cloud computing could also influence towards greater IT
purchases of data centre services. These trends are not only occurring in
the Thai market, but also throughout the world.
The overall IT market in Thailand next year is expected to grow by 20 per
cent. Sales of laptops, including notebooks and netbooks, are expected to
be 30 per cent higher than they were this year, while sales of desktop PCs
will grow at a steady rate of about 5 per cent. Thailand's computer market
is dominated by the consumer segment, accounting for about 60 per cent
of sales. This domination is expected to grow next year to about 65 per
cent of the market.
The market is expected to have distinguished segmentation, with first-time
buyers, primary and secondary schools making up a big percentage of the
desktop PC market. The market for notebooks and netbooks will comprise
small- and medium-sized enterprises and high school and university
students. Demographically, the main market for notebooks and netbooks
will be concentrated on Bangkok and large provinces and that for desktop
PCs, upcountry.
Experts reckon next year there will be a clearer price difference between
netbooks and notebooks. The netbook price should be lower than
Bt10,000, or US$299, but in Thai market we can see netbooks priced
between US$299 and US$448. That is quite a blurred market segment,
with low-entry notebooks. This year's overall netbook market is expected
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to be 5 to 8 per cent of the total computer market. Next year, there may be
a minor downward movement in the netbook market, which is expected to
be only 5 to 7 per cent of the total computer market because the price of
low-entry notebooks will fall to about US$415.
The software market is forecast to grow by 17 to 20 per cent next year
because of economic recovery. IT spending by businesses is expected to
rebound and new technologies will drive new applications to the market. In
2010, Thailand's software market will grow in a linear fashion, and it will
grow higher than this year's 13 to 15 per cent. Next year, the global IT
market will be back to normal and the Thai market is expected to respond
in similar fashion.
In Thailand, the SMEs (small and medium-sized enterprises] are one of the
growth sectors, while the government's massive economic stimulus
package (covering 2009 to 2011) also includes a significant IT budget.
Internet market trends
The Internet penetration rate in Thailand is one of the highest in the region.
In Bangkok, the increasing number of Broadband internet subscribers offer
opportunities for online applications and content delivery.
The expansion of applications provided over the IP Technology network,
will offer opportunities for leveraging new services and applications at a
lower cost delivered over Broadband Internet. IP technology allows
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flexibility and is cost effective for new applications developed, including
Internet Protocol Television (IPTV), home monitoring and securities
applications. In order to reduce the cost of business communications,
Virtual Private Network (VPN) and Voice over Internet Protocal (VOIP)
applications are predicted to become more popular.
Wireless Broadband technology is an alternative technology that is
expected to capture potential mobile users of PDA phones. This will allow
operators to offer high speed Internet access over smart phones together
with customized applications.
Mobile Market Trends
The penetration rate for mobiles in Thailand was approximately 70 per cent
in year 2008, and growing as a very strong rate. Mobile-to-mobile non-
voice services are an emerging new business opportunity for operators
allowing them to increase revenue by providing customized products. Top
revenue for non-voice services is through SMS, Calling Melody, GPRS and
download services from portals.
Video ring tones are another emerging trend for non-voice services in the
future. This service is expected to be a top seller for multimedia service in
the next three to four years.
The emergence of 3G technologies will impact on the wireless Internet
broadband provided by mobile companies in Thailand. Mobility features
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with new wireless applications will be one of the key drivers of the market.
Mass customization of wireless applications for mass consumers segment
is the area for potential growth.
M-Commerce services in Thailand have mostly been provided to the
financial sector. Mobile payment and confirmation are the most common
services available. The application for financial transactions will depend on
the network infrastructure and security issues.
Thailand is one of the leading medical tourism destinations in South East
Asian region. The industry is driven by private hospitals particularly in
Bangkok and major tourist cities in Thailand. Private hospitals in Thailand
have adopted relatively sophisticated technology in order to improve the
quality of its service as medical tourism in Thailand is expected to grow
strongly in the coming years.
The business opportunities in medical tourism for Malaysian companies in
Thailand are in the following areas:
• State-of-the-art technology and medical innovation i.e. Virtual
medical technology;
• Healthcare Business Solutions, i.e. Hospital portal, relationship
management, work flow and document management. Bumrungrad
hospital for example has implemented the hospital information
management system to deploy electronic medical records and
digital radiology; and
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• Emergency Services i.e. managing and designing the emergency
services.
8. Challenges
It is estimated that the ICT market in 2009 will grow at slightly over five per
cent. The computer services cluster is expected to be the fastest growing
area. The opportunities for Malaysian companies are available provided
they are able to manage some of the inherent problems existent in
Thailand’s ICT sector. In the case of services sub-sector, the country faces
the problem of high staff turnover, which consequently adds to the
personnel costs. The fact that it is also difficult to find skilled manpower
with English speaking competency adds to the costs.
For Malaysian companies which want to set up operations in Thailand, it
basically needs to do joint-ventures with Thai-companies as under
Thailand’s Foreign Business Act, all companies in Thailand with some
exceptions (e.g if they are under the BOI’s programme) should be at least
51 per cent Thai-owned.
In terms of competition, the possibility of getting Government contracts
directly is remote. It has to be done through Thai-companies. That will
involve creative contractual arrangements. Thai Government is also
promoting local developers and as such currently there is a growing pool of
home-grown technologies and products which are winning market share
among Thai consumers who are not too brand-conscious – which is
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probably Malaysian suppliers key target group for retail products with
Malaysian brands that does not have strong existing brand.
9. Relevant trade fairs
Office Automation Network & Stationary Fair 2010 (OAS & IT Fair)
Details: Telephone cabinet branches IP Phone Closed-Circuit
Televisions (CCTVs) Photocopy Machine Finger Scan Time Recorder etc. ,
Computer & Network Solution; such as Computer hardware and external
devices Printers Networking systems
Date: 25-28 Feb. 2010 10.00-19.00 hrs.
Place: Hall 6 IMPACT Exhibitions and Convention Center 99 Popular
Road, Banmai Subdistrict, Pakkred District, Nonthaburi 11120,
Thailand
Organizer: Trade and Public 121 Creation Ltd.,Parts
Address: 19/285 Jomtong RD.12 Bang Koe Jomtong Bangkok 10150
Tel: (662) 876 0880-1
Mobile: (66 82) 455 9642
Fax: (662) 876 0942
E-mail: 121creation@officeautoguide.com
Website: www.officeautoguide.com
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Thailand's Paradise Fair 2010
Details: World wide IT & Media Fair
Date: 22-30 May 2010 10.30-21.00 hrs.
Place: Hall 1-8 IMPACT Exhibition and Convention Center 99 Popular
Road, Banmai Subdistrict, Pakkred District, Nonthaburi 11120,
Thailand
Organizer: Union Pan Exhibitions Co., Ltd.
Address: 33 Soi Ramkhamhaeng 24 Yak 24, Ramkhamhaeng rd,
Huamark Bangkok Thailand 10240
Tel: (662) 314 0855, (662) 719 0408
Fax: (662) 319 8387
E-mail: unionpan@yahoo.com
Website: www.unionpan.com
Thailand Mobile Expo 2010
Details: The Exposition of the new innovation from various mobile
brands, accessories and related devices.
Date: 4 - 7 February, 2010 10.00-20.00 hrs.
Place: Queen Sirikit National Convention Center 60 New
Rachadapisek Road, Klongtoey, Bangkok 10110
Organizer: M Vision Co.,Ltd.
Address: 1225 Soi Sri Brurapa3, Khongjan, Bnagkapi, Bangkok 10240
Tel: (662) 734 7707-9
Fax: (662) 734 7710
E-mail: info@thailandmobileexpo.com
Website: http://www.thailandmobileexpo.com/
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COMMART THAILAND 2010
Details: Right IT Products & Solutions for SMEs & Professional
Date: 18 - 21 March, 2010
Place: Queen Sirikit National Convention Center 60 New
Rachadapisek Road,
Klongtoey, Bangkok 10110
Organizer: A.R.Information & Publication Co.,ltd.
Address: 99/16-20 Ratchadapisek rd.,Din-Daeng,Bangkok 10320
Tel: (662) 642 3400 ext 3414
Fax: (662) 641 2331
E-mail: webmaster@arip.co.th
Website: http://www.commartthailand.com
http://www.arip.co.th/
http://www.ar.co.th/
COMMART X'GEN THAILAND 2010
Details: The grand cutting-edge IT products trade fair, is back by
popular demand.
Date: 24 - 27 Jun, 2010
Place: Queen Sirikit National Convention Center 60 New
Rachadapisek Road, Klongtoey, Bangkok 10110
Organizer: A.R.Information & Publication Co.,ltd.
Address: 99/16-20 Ratchadapisek rd.,Din-Daeng,Bangkok 10320
Tel: (662) 642 3400 ext 3414
Fax: (662) 641 2331
E-mail: webmaster@arip.co.th
THAI MARKET FOR ICT PRODUCTS P a g e | 47
47
Website: http://www.commartthailand.com
http://www.arip.co.th/
http://www.ar.co.th/
COMMART COMTECH THAILAND 2010
Details: Right IT Products & Solutions for SMEs & Professional Con
Date: 4 – 7 Nov, 2010
Place: Queen Sirikit National Convention Center 60 New
Rachadapisek Road, Klongtoey, Bangkok 10110
Organizer: A.R.Information & Publication Co., ltd.
Address: 99/16-20 Ratchadapisek rd., Din-Daeng, Bangkok 10320
Tel: (662) 642 3400 ext 3414
Fax: (662) 641 2331
E-mail: webmaster@arip.co.th
Website: http://www.commartthailand.com
http://www.arip.co.th/
http://www.ar.co.th/
Manufacturing Expo 2010
Details: This one-and-only event will allow you to discover the latest
machinery and technologies for key industries with supporting
elements (such as automotive, electronics, plastic, mold & die),
learn extraordinary knowledge, meet your peers and new
business partners while obtaining excellent networking
opportunities.
THAI MARKET FOR ICT PRODUCTS P a g e | 48
48
Date: 24 - 27 Jun 2010
Place: Bangkok International Trade & Exhibition Centre (BITEC) 88
Bangna-Trad Road (Km.1), Bangna, Bangkok 10260 Thailand
Organizer: Reed Tradex
Address: 32nd fl., Sathorn Nakorn Tower 100/68-69 North Sathon Road,
Silom, Bangrak, Bangkok 10500 Thailand
Tel: (662) 686 7299
Fax: (662) 686 7288
E-mail: rtdx@reedtradex.co.th
Website: http://www.manufacturing-expo.com
http:// www.reedtradex.com
INTERSEC Thailand 2010
Details: International Trade Fair for Security and Safety
Date: 2 -4 November 2010
Place: Bangkok International Trade & Exhibition Centre (BITEC) 88
Bangna-Trad Road (Km.1), Bangna, Bangkok 10260 Thailand
Organizer: Messe Frankfurt (HK) Ltd.
Address: 3506 China Resources Building
26 Harbour Road, Wanchai, Hong Kong
Tel: (852) 2802 7728, (852) 2238 9955
Fax: (852) 2598 8771
E-mail: intersec@hongkong.messefrankfurt.com
Website: www.intersec-thailand.com
THAI MARKET FOR ICT PRODUCTS P a g e | 49
49
Thailand Game Show 2010
Details: THE COMPETITIONS will be divided into various zones which
are Game Shows & Competitions. there are the Game
Challenge zone, TGS Co play Contest zone, the 4th Comp
Gamer Awards and special game concert
Date: 8-10 January 2010 10.00-20.00 hrs.
Place: Queen Sirikit National Convention Center 60 New
Rachadapisek Road, Klongtoey, Bangkok 10110
Organizer: Show No Limit Co., Ltd.
Address: 87/88 6th Floor Modern Town Building Soi Sukhumvit 63
(Ekamai) Sukhumvit Road Wattana
Bangkok, Thailand 10110
Tel: (662) 665 6991 ext. 104, (662) 392 7766
Fax: (662) 392 7766 ext.22
E-mail: info@shownolimit.com
Website: http://www.tgs.in.th
10. Relevant Trade Associations/Agencies
The Association of Thai Computer Industry
Address: 6F. Phyathai Plaza Bldg., 128 Phyathai rd.,
Rajthevi,Bangkok10400
Tel: (662) 216 5862, 216 5991-2
Contact Person: Mr. Manoo Ordeedolchest
Fax: (662) 216 5867
Email: info@atci.or.th
Website: www.atci.or.th
THAI MARKET FOR ICT PRODUCTS P a g e | 50
50
Thai Animation and Computer Graphics Association
Address: 128/61 Payathai Plaza Bldg., 6th Fl.,
Rajtavee Road, Bangkok 10400
Tel: (662)216 5860
Contact Person: Mr.Panyalak Udomlartprasert
Fax: (662)216 5847
E-mail: admin@computerthai.org, wan999th@yahoo.com
Website: www.computerthai.org
Software Industry Promotion Agency (SIPA)
Address: The Government Complex Commemorating His Majesty The
King's 80th Birthday Anniversary, 5th December, B.E. 2550(2007)120 Moo
3, The Government Complex (Building B), 9th Floor Chaengwattana Road,
Thungsonghong, Laksi, Bangkok 10210, Thailand
Tel: (662)141 7100
Contact Person: Mr.Eakkarat Benarbut
Fax: (662)143 8051
Website: www.sipa.or.th
THAI MARKET FOR ICT PRODUCTS P a g e | 51
51
Association of Thai Software Industry (ATSI)
Address: 5F. Software Park Bldg., 99/30 Moo 4, Chaengwattana rd,
Pakkret, Klongkleua, Nonthaburi 11120
Tel: (662) 583 9992
Contact Person: Mr.Somkraet Ungarree
Fax: (662) 962 1349
Email: info@atsi.or.th
Website: www.atsi.or.th
National Electronics and Computer Technology Canter (NECTECH)
Address: 112 Phahon Yothin Rd., Klong 1, Klong Luang,
Pathumthani 12120, Thailand
Tel: (662)-564-6900 ext 2335 – 2340
Contact Person: Mr..Attakorn Sirisuwan
Email: info@nectec.or.th
Website: www.nectech.or.th

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Product Market Study - Thailand's Market for ICT

  • 1. THAI MARKET FOR ICT PRODUCTS P a g e | 1 1 PRODUCT MARKET STUDY THAILAND’S MARKET FOR ICT MATRADE BANGKOK Dec 2009
  • 2. THAI MARKET FOR ICT PRODUCTS P a g e | 2 2 TABLE OF CONTENTS 1. Industry Overview Page 3 2. Industry Classification Page 22 3. ICT imports in Thailand Page 22 4. Distribution Channels Page 27 5. Standards and Regulations Page 33 6. Tariffs Page 37 7. Market Trends Page 38 8. Challenges Faced Page 43 9. Relevant Trade Fairs Page 44 10. Relevant Trade Associations/Agencies Page 49 Sources of Information:  www.customs.go.th  www.boi.go.th  www.moc.go.th  www.bangkokpost.com  www.nationmultimedia.com  www.eiu.com
  • 3. THAI MARKET FOR ICT PRODUCTS P a g e | 3 3 1. Industry Overview The Thai ICT market is growing at one of the highest rates in the region. With a population of over 60 million and the penetration rate of mobile and Internet continuing to grow, Thailand has become a very attractive market. Thailand is also becoming increasingly affluent and disposable incomes are growing. This has resulted in increased expenditure on IT products. In regards to IT infrastructure, the low fixed line broadband penetration (11 per cent in 2009) is compensated by the Kingdom’s high mobile telephone penetration, estimated at 97 per cent in 2009. In the capital, Bangkok, mobile telephone penetration is above 120 per cent. The Thai Government has set plans for implementing mobile broadband to compensate for the low fixed-line broadband penetration, estimated to two per cent in 2009, in order to catch up on neighboring countries and this gives opportunity to introduce solutions that have already been tested in other markets. However, Thailand’s ICT market faces challenges as it enters a period of liberalization. The government has set up an independent regulatory body, the National Telecommunications Commission (NTC) to remove regulatory matters from the former government state owned enterprise, TOT Public Company Limited (TOT) and Communication Authority of Thailand (CAT) area of responsibility. NTC is attempting to provide a framework for free and fair competition and has transformed some areas. This process has even resulted in the delay of 3G rollout in the country.
  • 4. THAI MARKET FOR ICT PRODUCTS P a g e | 4 4 Thailand’s Board of Investment (BOI) is focusing on ICT and software design by offering special tax incentives towards this sector. BOI’s special incentives to investors in the ICT sector, include maximum tax incentives for high-technology investment projects totaling more than US$0.9 Million(Baht30 million) and producing products not yet made in Thailand, and exemption from import duties on raw materials and components used for producing electronic goods, just to name a few. This combined with BOI’s Regional Operating Headquarters incentives has resulted in excellent opportunities for setting up ICT services and software headquarter/competency centers and shared services. Thailand ICT Market 2007 – 2008 and Outlook 2009 ICT Market Value (US million) YTY Growth (%) Value in % 2007 2008 2009f 07/08 08/09 2007 2008 2009f 1.Computer Hardware 2,036 2,262 2,253 11.1 -0.4 13.6 13.9 13.3 2.Computer Software 1,691 1,880 1,975 11.2 5.1 11.3 11.6 11.6 3.Computer Services 640 746 852 16.6 14.2 4.3 4.6 5.0 4.Communications 10,607 11,327 11,963 6.8 5.6 70.8 69.9 70.2 Total 14,974 16,214 17,043 8.3 5.1 100 100 100
  • 5. THAI MARKET FOR ICT PRODUCTS P a g e | 5 5 IT Market Comparison 2007 – 2009 IT Market 2008 = US$ 6,676 Million Increased From 2007 = 11.9% IT Market 2008 = US$ 6,676 Million Increased From 2007 = 11.9% IT Market 2009f = US$ 7,067 Million Increased From 2008 = 5.9%
  • 6. THAI MARKET FOR ICT PRODUCTS P a g e | 6 6 ICT Spending by Economic Sector in 2008 ( 1 USD : Baht 33.48) IT Spending by Economic Sector in 2008 ( 1 USD : Baht 33.48 )
  • 7. THAI MARKET FOR ICT PRODUCTS P a g e | 7 7 Computer Hardware HW Market Growth 2007 – 2009 HW Market Value in MB 2007 – 2009f 1,738 1,859 600 1,200 1,8001,800 2,400 US Million 2,036 2,262 2,253 1,738 1,859 600 1,200 1,800 2,400
  • 8. THAI MARKET FOR ICT PRODUCTS P a g e | 8 8 Desktop PC Sales in 2005 – 2009f Inter Brand vs. Local Brand+DIY Sales Comparison Desktop PC V.S. Notebook in 2005 – 2009f
  • 9. THAI MARKET FOR ICT PRODUCTS P a g e | 9 9 Mini Notebook Sales in 2007 – 2009f Sales of CRT vs. LCD in 2005 -2009f
  • 10. THAI MARKET FOR ICT PRODUCTS P a g e | 10 10 Sunrise vs. Sunset HW Market (in MB) in 2008 by Economic Sect Million USD
  • 11. THAI MARKET FOR ICT PRODUCTS P a g e | 11 11 HW Market 2007- 2009 by Economic Sector Computer Software Software Market 2007 – 2009 2009 1,495 1,691 1,880 1,975 2,400 2,100 1,800 1,500 1,200 900 2006 2007 2008 Million USD 2009f
  • 12. THAI MARKET FOR ICT PRODUCTS P a g e | 12 12 Software Market by Category 2007 – 2009f ( 1 USD : Baht 33.48 ) 1. Include Package Software and Software Development 2. Business Application and Entertain Application 3. e-Learning, CAD/CAM, Games (exclude On-Line Games) , etc Enterprise Software Packaged Software VS Developed Software 1,659 (M USD) 1,719 (M USD)
  • 13. THAI MARKET FOR ICT PRODUCTS P a g e | 13 13 Mobile Application Software Business App. vs. Entertainment App. Software Spending by Economic Sector 2007 – 2009f 79 (Mil USD) 95 (Mil USD) 2007 2008 2008f
  • 14. THAI MARKET FOR ICT PRODUCTS P a g e | 14 14 Technology Trend: Software Enterprise Software - Service Oriented Architecture (SOA) - Software as a Service - Web 2.0 - Cloud Computing - Open Sources Software - Storage Management Mobile Applications - 3G (New Application on Mobile) - GPS on Mobile - Services Application on Mobile (Mobile Banking/ Mobile Payment) - Mobile Internet - Mobile App. for Business Process Management (CRM App.) - I-Phone related applications
  • 15. THAI MARKET FOR ICT PRODUCTS P a g e | 15 15 Computer Software Market 2007 - 2008 and Outlook 2009f 1. Data Center and Disaster Recovery Center include Web Hosting/Mail Hosting, Co- Location Service/Dedicated Server Services, and Disaster Recovery Services and Others (those located in the Data Center and outside the Data Center) 2. IT Outsourcing includes Enterprise-Wide, Network and Desktop Management, and Application Management and Others.
  • 16. THAI MARKET FOR ICT PRODUCTS P a g e | 16 16 Computer Services Computer Services Market 2006 – 2008 and Outlook 2009f Million USD 900 750 600 450 300 150 2006 2007 2008 2009f Million USD 900 750 600 450 300 150 0 528 640 746 852 2006 2007 2008 2009f Million USD 900 750 600 450 300 150 0
  • 17. THAI MARKET FOR ICT PRODUCTS P a g e | 17 17 Computer Services Market in 2008 1. Data Center and Disaster Recovery Center include Web Hosting/Mail Hosting, Co- Location Service/Dedicated Server Services, and Disaster. Recovery Services and Others (those located in the Data Center and outside the Data Center 2. IT Outsourcing includes Enterprise-Wide, Network and Desktop Management, and Application Management and Others. Computer Services Market in 2008 By Economic Sector Sectors Value (Mil. USD) Ratio (%) Government 187 25 Corporate/Enterprise 553 74 Household/SOHO* 6 1 Total 746 100 Remark : Small Office and Home Office
  • 18. THAI MARKET FOR ICT PRODUCTS P a g e | 18 18 Computer Services Market 2007 – 2008 by Economic Sector Communications Scope /Definition of Communications Market
  • 19. THAI MARKET FOR ICT PRODUCTS P a g e | 19 19 Communications Market 2008 – 2009f Communications Equipment Market 2007 – 2009f
  • 20. THAI MARKET FOR ICT PRODUCTS P a g e | 20 20 Communication Services Market 2007 – 2009f Communications Equipment Market 2008 By Type of Users
  • 21. THAI MARKET FOR ICT PRODUCTS P a g e | 21 21 Communications Services Market 2008 By Type of Users Communications Equipment - Wi-fi Mesh (roaming network equipment) - Security Equipment - Wireless N (Multiple SSID) - Mobile Internet Device for 3G & Wimax - iPhone Communications Services - Multimedia, Digital Content Mobile Interne - 3G, Wimax - Unified Communications/Unified Messaging - Video Conference Source: www.nectec.or.th/srii/
  • 22. THAI MARKET FOR ICT PRODUCTS P a g e | 22 22 2. Industry Classification Most of the products/components covered in this report fall under Harmonized System Code 8471 – Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included. 3. ICT import in Thailand
  • 23. THAI MARKET FOR ICT PRODUCTS P a g e | 23 23
  • 24. THAI MARKET FOR ICT PRODUCTS P a g e | 24 24
  • 25. THAI MARKET FOR ICT PRODUCTS P a g e | 25 25
  • 26. THAI MARKET FOR ICT PRODUCTS P a g e | 26 26
  • 27. THAI MARKET FOR ICT PRODUCTS P a g e | 27 27 4. Distribution channels The basic distribution channel is through computer wholesalers and distributors. Some of the established distributors are as below:
  • 28. THAI MARKET FOR ICT PRODUCTS P a g e | 28 28
  • 29. THAI MARKET FOR ICT PRODUCTS P a g e | 29 29 There are also key distribution areas where many small retailers are centered around, similar to Malaysia’s Low Yat Plaza. 4.1 Pantip Plaza. (4 Branches) The flagship store is located at: 604/3 Petchburi Rd, Rachatevi Bangkok 10400 Tel: (662)256-0355 Fax: (662) 256-0449 E-mail: info@pantipplaza.com www.pantipplaza.com
  • 30. THAI MARKET FOR ICT PRODUCTS P a g e | 30 30 4.2 IT CITY IT CITY Public Company Limited is a superstore, selling computers, peripherals and other related IT products (One Stop Shopping IT Products) under the trade name "IT CITY" which is a retail superstore chain, specializing in IT products. Its slogan is "The IT Superstore". Contact address: Headquarters is located at 604/3 Pantip Plaza Bldg., 5th- 6th Fl., Petchburi Road, Tanon Petchburi, Rajthevee, Bangkok 10400, Thailand. Tel: 0-2656-5030-45 Fax: 0-2656-5049 Website: www.itcity.co.th 4.3 Hardware House Hardware House International is retail outlet specializing in consumer Audio/Visual/Consumer Electronics, computer equipment, IT and digital lifestyle products. It has 90 branches covering the Bangkok metropolitan area and distributed to IT centers in the provinces. Address: 33 / 4, 2nd Floor, Rama 9 Road. Huay Kwang, Bangkok 10310. Tel: (662) 685-8900 Fax: (662) 685 8826 Website: http://www.hwhinter.com/index.php
  • 31. THAI MARKET FOR ICT PRODUCTS P a g e | 31 31 4.4 IT Square IT square supports 300 retailers specializing in IT products and services. Space overall than 120,000 square meters with convenient parking to 2,500 vehicles with the idea that. "Digital life at IT Square" is also a nine storey office building and approximately 15,000 square meters of space available with. Address: 333/100, Moo 4 Chaengwattana Road, Laksi, BangKhen, Bangkok, 10210, Thailand Tel: 025760333 Fax: 0-2576-0789. Website: http://www.itsquareonline.com/ Email: info@itsquareonline.com. Webmaster: webmaster@itsquareonline.com. 4.5 Data IT Super Stores Company Limited. Address: 99 Room FC109, 4th Floor Zeer Rangsit Shopping Complex, Phaholyothin Road, Kukot, Lumlukka, Pathumthani, 12130, Thailand. Tel: (662)531-3333 Fax: (662)523-8899. Website: http://www.data-it.co.th/index.html
  • 32. THAI MARKET FOR ICT PRODUCTS P a g e | 32 32 4.6 Power Buy Co., Ltd. (64 Branches) There are also key distribution areas where every The Mall and Central Department store. Address: 919/555 South Tower 11 Floor, Silom Rd, Bangrak, Bangkok 10500 Thailand Tel. (662) 2069300 http://www.powerbuy.co.th/ 4.7 Tesco Lotus (439) There are also key distribution areas. Address: 629/1 Moo 10 Navamin Rd, Klongkum Bungkum Bangkok 10230 Thailand. Tel. (662) 797-9000 http://www.tescolotus.net 4.8 Siam Makro (29 Branches) There are also key distribution areas. Contract address 3498 Floor 2 rd. Ladproa Rd. Klongjan, Bangkapi, Bangkok 10240 Tel.(662) 723 1000,723 1000 Fax.(622)375-2789 E-mail: makrocrm@siammakro.co.th
  • 33. THAI MARKET FOR ICT PRODUCTS P a g e | 33 33 http://www.siammakro.co.th/contact.php 4.8 Home Pro (35 Branches) There are also key distribution areas. Contract address 96/27 Moo 9 Bangkhen Aumphur Muang, Nonthaburi 11000 Tel. (622) 832-1000 http://www.homepro.co.th 5. Standards and regulations Standards In the case of standards, it varies according to the products. Information related to specific IT products and services can be obtained from: Thai Industrial Standards Institute Rama 6 Street, Ratchathewi, Bangkok 10400, THAILAND Telephone: (662) 202 3301-4 Fax: (662) 202 3415 E-mail: thaistan@tisi.go.th Contact person: Khun Tinakon Pongluxna Tel: (622)202 3467, 202 3474 Email: tinakon@tisi.go.th Some of the standards related to the ICT sector in Thailand can be obtained from http://www.nectec.or.th/it-standards.Many of these documents are in Thai.
  • 34. THAI MARKET FOR ICT PRODUCTS P a g e | 34 34 A) Register with Thai Customs Department Importer/Agent in Thailand must complete registration with the Thai Customs Department (E –Import), Documents required before going through the E-Import process: - Submit company registration to the Customs. Foreign Direct Investors, who did not register their companies in the Kingdom, can still apply to the Customs provided they have done the Company Registration** abroad. The registrations, however, must be attested by a recognized Notary Public and the attestation must not over than six months. **http://www.customsclinic.org/index.php?option=com_phocadown load&view=sections&Itemid=0&lang=en (E-Service) - Original and a copy of Company’s Bank Statement or Saving Account Book. Other related documents; - ID card or passport of company’s authorities. - Registration for Foreign Trader issued by Ministry of Commerce, etc
  • 35. THAI MARKET FOR ICT PRODUCTS P a g e | 35 35 B) Importation When a shipment arrives in Thailand, importers are required to file a Goods Declaration and supporting documents for the imports with a Customs officer at the port of entry. Document: The minimum documents required for the clearance of imports consists of: (1) Import Declaration (Electronic Document 91/1) (2) Bill of Lading (B/L) or Air Waybill (3) Invoice (Electronic Document) (4) Packing List (5) Import License (if applicable) (6) Certificates of Origin (if applicable) (7) other relevant documents such as catalogue, product Specification, etc. C) E-Import procedure to be done online using the Royal Thai Customs e-System Objective: For customs clearance 1. Importer/Agent who are registered with the Thai Customs (and hence has registered with the e-service system) inputs invoice and Shipping/Cargo data into computer system at his/her office or through counter service. After that, data will be electronically transmitted to Customs.
  • 36. THAI MARKET FOR ICT PRODUCTS P a g e | 36 36 2. Custom officer manifest data e.g. Ship bill no., master Ship bill no., etc. 3. Data is processed and examined by Customs system. In case the data is found “not match”, the system will inform importer/agent for making correction. 4. If the data “matches”, the system will issue a Shipping/Cargo permit no. along with a Shipping/Cargo status (Green Line or Red Line) to be used for Shipping/Cargo inspection at Checking Post. 5. When Ship/Airline arrives at the mentioned Port, the Importer officer will break down and keep in location, preparing for delivery. 6. Importer/Agent contacts Shipping/Airline office for D/O documents (Delivery Order) to be used for D/O payment fee. 7. Importer/Agent obtains Shipping/Cargo shipment at Port Authority of Thailand, along with a Shipping/Cargo permit document. 8. At Customs Checking Post exit, importer/agent submits a shipping/cargo permit document and has a shipping/cargo shipment checked according to its status, green line or a red line
  • 37. THAI MARKET FOR ICT PRODUCTS P a g e | 37 37 For further inquiry and information, E-mail : customs_clinic@customs.go.th Website: http://www.customsclinic.org/ 6. Tariffs Exports of ICT products and services are exempted from import tariff under the Common Effective Preferential Tariff arrangement under ASEAN Free Trade Agreement effective 1st January 2010. Other Taxes Thailand imposes VAT (Value Added Tax) of seven per cent for all products sold domestically.
  • 38. THAI MARKET FOR ICT PRODUCTS P a g e | 38 38 7. Market trends Trends and Competitive Environment Thailand's information technology market is expected to return to normal growth in 2010, with the hardware market forecast to grow by 20 per cent and the software market by 17 to 20 per cent. There will be two major factors driving IT-market growth next year: the Intel Core i series central processing units (CPUs) - the Core i3, Core i5 and Core i7 - and Microsoft's Windows 7, the latest version of the ubiquitous operating system. Both of them will create a big impact on the corporate and consumer IT markets. IT purchases are expected to grow next year in the corporate segment due to the change of core technologies - both operating systems and CPUs - and a rise in the "refreshment cycle", after companies had slowed their IT- replacement programmes for two years because of the economic crisis. The coming of Windows 7 and the Intel Core i family will help to raise the total IT market next year beyond this year's level (when it grew by only 10 to 15 per cent). Intel Thailand is planning to spend "a significant marketing budget" next year to promote its new Core i family of CPUs. The Core i3, Core i5, and Core i7 will supersede Intel's current Celeron, Pentium, Core2 Duo and Core 2 Quad CPUs. Any Malaysian IT product that supports these specifications will have opportunity to further grow market presence in Thailand.
  • 39. THAI MARKET FOR ICT PRODUCTS P a g e | 39 39 The rapid increase in Internet usage, a widespread expansion of social networking and cloud computing could also influence towards greater IT purchases of data centre services. These trends are not only occurring in the Thai market, but also throughout the world. The overall IT market in Thailand next year is expected to grow by 20 per cent. Sales of laptops, including notebooks and netbooks, are expected to be 30 per cent higher than they were this year, while sales of desktop PCs will grow at a steady rate of about 5 per cent. Thailand's computer market is dominated by the consumer segment, accounting for about 60 per cent of sales. This domination is expected to grow next year to about 65 per cent of the market. The market is expected to have distinguished segmentation, with first-time buyers, primary and secondary schools making up a big percentage of the desktop PC market. The market for notebooks and netbooks will comprise small- and medium-sized enterprises and high school and university students. Demographically, the main market for notebooks and netbooks will be concentrated on Bangkok and large provinces and that for desktop PCs, upcountry. Experts reckon next year there will be a clearer price difference between netbooks and notebooks. The netbook price should be lower than Bt10,000, or US$299, but in Thai market we can see netbooks priced between US$299 and US$448. That is quite a blurred market segment, with low-entry notebooks. This year's overall netbook market is expected
  • 40. THAI MARKET FOR ICT PRODUCTS P a g e | 40 40 to be 5 to 8 per cent of the total computer market. Next year, there may be a minor downward movement in the netbook market, which is expected to be only 5 to 7 per cent of the total computer market because the price of low-entry notebooks will fall to about US$415. The software market is forecast to grow by 17 to 20 per cent next year because of economic recovery. IT spending by businesses is expected to rebound and new technologies will drive new applications to the market. In 2010, Thailand's software market will grow in a linear fashion, and it will grow higher than this year's 13 to 15 per cent. Next year, the global IT market will be back to normal and the Thai market is expected to respond in similar fashion. In Thailand, the SMEs (small and medium-sized enterprises] are one of the growth sectors, while the government's massive economic stimulus package (covering 2009 to 2011) also includes a significant IT budget. Internet market trends The Internet penetration rate in Thailand is one of the highest in the region. In Bangkok, the increasing number of Broadband internet subscribers offer opportunities for online applications and content delivery. The expansion of applications provided over the IP Technology network, will offer opportunities for leveraging new services and applications at a lower cost delivered over Broadband Internet. IP technology allows
  • 41. THAI MARKET FOR ICT PRODUCTS P a g e | 41 41 flexibility and is cost effective for new applications developed, including Internet Protocol Television (IPTV), home monitoring and securities applications. In order to reduce the cost of business communications, Virtual Private Network (VPN) and Voice over Internet Protocal (VOIP) applications are predicted to become more popular. Wireless Broadband technology is an alternative technology that is expected to capture potential mobile users of PDA phones. This will allow operators to offer high speed Internet access over smart phones together with customized applications. Mobile Market Trends The penetration rate for mobiles in Thailand was approximately 70 per cent in year 2008, and growing as a very strong rate. Mobile-to-mobile non- voice services are an emerging new business opportunity for operators allowing them to increase revenue by providing customized products. Top revenue for non-voice services is through SMS, Calling Melody, GPRS and download services from portals. Video ring tones are another emerging trend for non-voice services in the future. This service is expected to be a top seller for multimedia service in the next three to four years. The emergence of 3G technologies will impact on the wireless Internet broadband provided by mobile companies in Thailand. Mobility features
  • 42. THAI MARKET FOR ICT PRODUCTS P a g e | 42 42 with new wireless applications will be one of the key drivers of the market. Mass customization of wireless applications for mass consumers segment is the area for potential growth. M-Commerce services in Thailand have mostly been provided to the financial sector. Mobile payment and confirmation are the most common services available. The application for financial transactions will depend on the network infrastructure and security issues. Thailand is one of the leading medical tourism destinations in South East Asian region. The industry is driven by private hospitals particularly in Bangkok and major tourist cities in Thailand. Private hospitals in Thailand have adopted relatively sophisticated technology in order to improve the quality of its service as medical tourism in Thailand is expected to grow strongly in the coming years. The business opportunities in medical tourism for Malaysian companies in Thailand are in the following areas: • State-of-the-art technology and medical innovation i.e. Virtual medical technology; • Healthcare Business Solutions, i.e. Hospital portal, relationship management, work flow and document management. Bumrungrad hospital for example has implemented the hospital information management system to deploy electronic medical records and digital radiology; and
  • 43. THAI MARKET FOR ICT PRODUCTS P a g e | 43 43 • Emergency Services i.e. managing and designing the emergency services. 8. Challenges It is estimated that the ICT market in 2009 will grow at slightly over five per cent. The computer services cluster is expected to be the fastest growing area. The opportunities for Malaysian companies are available provided they are able to manage some of the inherent problems existent in Thailand’s ICT sector. In the case of services sub-sector, the country faces the problem of high staff turnover, which consequently adds to the personnel costs. The fact that it is also difficult to find skilled manpower with English speaking competency adds to the costs. For Malaysian companies which want to set up operations in Thailand, it basically needs to do joint-ventures with Thai-companies as under Thailand’s Foreign Business Act, all companies in Thailand with some exceptions (e.g if they are under the BOI’s programme) should be at least 51 per cent Thai-owned. In terms of competition, the possibility of getting Government contracts directly is remote. It has to be done through Thai-companies. That will involve creative contractual arrangements. Thai Government is also promoting local developers and as such currently there is a growing pool of home-grown technologies and products which are winning market share among Thai consumers who are not too brand-conscious – which is
  • 44. THAI MARKET FOR ICT PRODUCTS P a g e | 44 44 probably Malaysian suppliers key target group for retail products with Malaysian brands that does not have strong existing brand. 9. Relevant trade fairs Office Automation Network & Stationary Fair 2010 (OAS & IT Fair) Details: Telephone cabinet branches IP Phone Closed-Circuit Televisions (CCTVs) Photocopy Machine Finger Scan Time Recorder etc. , Computer & Network Solution; such as Computer hardware and external devices Printers Networking systems Date: 25-28 Feb. 2010 10.00-19.00 hrs. Place: Hall 6 IMPACT Exhibitions and Convention Center 99 Popular Road, Banmai Subdistrict, Pakkred District, Nonthaburi 11120, Thailand Organizer: Trade and Public 121 Creation Ltd.,Parts Address: 19/285 Jomtong RD.12 Bang Koe Jomtong Bangkok 10150 Tel: (662) 876 0880-1 Mobile: (66 82) 455 9642 Fax: (662) 876 0942 E-mail: 121creation@officeautoguide.com Website: www.officeautoguide.com
  • 45. THAI MARKET FOR ICT PRODUCTS P a g e | 45 45 Thailand's Paradise Fair 2010 Details: World wide IT & Media Fair Date: 22-30 May 2010 10.30-21.00 hrs. Place: Hall 1-8 IMPACT Exhibition and Convention Center 99 Popular Road, Banmai Subdistrict, Pakkred District, Nonthaburi 11120, Thailand Organizer: Union Pan Exhibitions Co., Ltd. Address: 33 Soi Ramkhamhaeng 24 Yak 24, Ramkhamhaeng rd, Huamark Bangkok Thailand 10240 Tel: (662) 314 0855, (662) 719 0408 Fax: (662) 319 8387 E-mail: unionpan@yahoo.com Website: www.unionpan.com Thailand Mobile Expo 2010 Details: The Exposition of the new innovation from various mobile brands, accessories and related devices. Date: 4 - 7 February, 2010 10.00-20.00 hrs. Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110 Organizer: M Vision Co.,Ltd. Address: 1225 Soi Sri Brurapa3, Khongjan, Bnagkapi, Bangkok 10240 Tel: (662) 734 7707-9 Fax: (662) 734 7710 E-mail: info@thailandmobileexpo.com Website: http://www.thailandmobileexpo.com/
  • 46. THAI MARKET FOR ICT PRODUCTS P a g e | 46 46 COMMART THAILAND 2010 Details: Right IT Products & Solutions for SMEs & Professional Date: 18 - 21 March, 2010 Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110 Organizer: A.R.Information & Publication Co.,ltd. Address: 99/16-20 Ratchadapisek rd.,Din-Daeng,Bangkok 10320 Tel: (662) 642 3400 ext 3414 Fax: (662) 641 2331 E-mail: webmaster@arip.co.th Website: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/ COMMART X'GEN THAILAND 2010 Details: The grand cutting-edge IT products trade fair, is back by popular demand. Date: 24 - 27 Jun, 2010 Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110 Organizer: A.R.Information & Publication Co.,ltd. Address: 99/16-20 Ratchadapisek rd.,Din-Daeng,Bangkok 10320 Tel: (662) 642 3400 ext 3414 Fax: (662) 641 2331 E-mail: webmaster@arip.co.th
  • 47. THAI MARKET FOR ICT PRODUCTS P a g e | 47 47 Website: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/ COMMART COMTECH THAILAND 2010 Details: Right IT Products & Solutions for SMEs & Professional Con Date: 4 – 7 Nov, 2010 Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110 Organizer: A.R.Information & Publication Co., ltd. Address: 99/16-20 Ratchadapisek rd., Din-Daeng, Bangkok 10320 Tel: (662) 642 3400 ext 3414 Fax: (662) 641 2331 E-mail: webmaster@arip.co.th Website: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/ Manufacturing Expo 2010 Details: This one-and-only event will allow you to discover the latest machinery and technologies for key industries with supporting elements (such as automotive, electronics, plastic, mold & die), learn extraordinary knowledge, meet your peers and new business partners while obtaining excellent networking opportunities.
  • 48. THAI MARKET FOR ICT PRODUCTS P a g e | 48 48 Date: 24 - 27 Jun 2010 Place: Bangkok International Trade & Exhibition Centre (BITEC) 88 Bangna-Trad Road (Km.1), Bangna, Bangkok 10260 Thailand Organizer: Reed Tradex Address: 32nd fl., Sathorn Nakorn Tower 100/68-69 North Sathon Road, Silom, Bangrak, Bangkok 10500 Thailand Tel: (662) 686 7299 Fax: (662) 686 7288 E-mail: rtdx@reedtradex.co.th Website: http://www.manufacturing-expo.com http:// www.reedtradex.com INTERSEC Thailand 2010 Details: International Trade Fair for Security and Safety Date: 2 -4 November 2010 Place: Bangkok International Trade & Exhibition Centre (BITEC) 88 Bangna-Trad Road (Km.1), Bangna, Bangkok 10260 Thailand Organizer: Messe Frankfurt (HK) Ltd. Address: 3506 China Resources Building 26 Harbour Road, Wanchai, Hong Kong Tel: (852) 2802 7728, (852) 2238 9955 Fax: (852) 2598 8771 E-mail: intersec@hongkong.messefrankfurt.com Website: www.intersec-thailand.com
  • 49. THAI MARKET FOR ICT PRODUCTS P a g e | 49 49 Thailand Game Show 2010 Details: THE COMPETITIONS will be divided into various zones which are Game Shows & Competitions. there are the Game Challenge zone, TGS Co play Contest zone, the 4th Comp Gamer Awards and special game concert Date: 8-10 January 2010 10.00-20.00 hrs. Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110 Organizer: Show No Limit Co., Ltd. Address: 87/88 6th Floor Modern Town Building Soi Sukhumvit 63 (Ekamai) Sukhumvit Road Wattana Bangkok, Thailand 10110 Tel: (662) 665 6991 ext. 104, (662) 392 7766 Fax: (662) 392 7766 ext.22 E-mail: info@shownolimit.com Website: http://www.tgs.in.th 10. Relevant Trade Associations/Agencies The Association of Thai Computer Industry Address: 6F. Phyathai Plaza Bldg., 128 Phyathai rd., Rajthevi,Bangkok10400 Tel: (662) 216 5862, 216 5991-2 Contact Person: Mr. Manoo Ordeedolchest Fax: (662) 216 5867 Email: info@atci.or.th Website: www.atci.or.th
  • 50. THAI MARKET FOR ICT PRODUCTS P a g e | 50 50 Thai Animation and Computer Graphics Association Address: 128/61 Payathai Plaza Bldg., 6th Fl., Rajtavee Road, Bangkok 10400 Tel: (662)216 5860 Contact Person: Mr.Panyalak Udomlartprasert Fax: (662)216 5847 E-mail: admin@computerthai.org, wan999th@yahoo.com Website: www.computerthai.org Software Industry Promotion Agency (SIPA) Address: The Government Complex Commemorating His Majesty The King's 80th Birthday Anniversary, 5th December, B.E. 2550(2007)120 Moo 3, The Government Complex (Building B), 9th Floor Chaengwattana Road, Thungsonghong, Laksi, Bangkok 10210, Thailand Tel: (662)141 7100 Contact Person: Mr.Eakkarat Benarbut Fax: (662)143 8051 Website: www.sipa.or.th
  • 51. THAI MARKET FOR ICT PRODUCTS P a g e | 51 51 Association of Thai Software Industry (ATSI) Address: 5F. Software Park Bldg., 99/30 Moo 4, Chaengwattana rd, Pakkret, Klongkleua, Nonthaburi 11120 Tel: (662) 583 9992 Contact Person: Mr.Somkraet Ungarree Fax: (662) 962 1349 Email: info@atsi.or.th Website: www.atsi.or.th National Electronics and Computer Technology Canter (NECTECH) Address: 112 Phahon Yothin Rd., Klong 1, Klong Luang, Pathumthani 12120, Thailand Tel: (662)-564-6900 ext 2335 – 2340 Contact Person: Mr..Attakorn Sirisuwan Email: info@nectec.or.th Website: www.nectech.or.th